Zanhoriloch/Mhorilot(Small City, 6,000): This strange dwarven city rests on an island in the Underdark's Lake Thoroot. Zanhoriloch was originally built by drow, who in the Year of the Last Hunt (722 DR) launched an attack on the western dwarven city of Kanaglym through a portal. The dwarves surprised the drow with the strength of their resistance and forced the dark elves to retreat, following them back through the portal, where the dwarves sacked the unprepared city and turned the lake red with drow blood.

Stranded in an unknown location by the closing portal, the dwarves settled in the city, reworking its architecture to suit them and their faith. Though they were slow to learn boating, the dwarves of Zanhoriloch (usually called Mhorilot, meaning "dark surface," by its inhabitants) are comfortable on the water and keep their city self-sufficient by fishing and kelp farming. They have small mining expeditions on the near shore and possess wealth of silver, gold, and iron. Having spent several centuries avoiding the elves of Cormanthor, the dwarves recently emerged from a small tunnel leading to Battledale, with whom they now trade weapons and precious metals for grain, beef, and wood.

from Rand's Travelogue (WotC article)

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